Today, on 1 February, the European Council supported the revision of the European Union’s budget, which will provide EUR 50 billion in macro-financial support to Ukraine, to be implemented under the Ukraine Facility programme over the period of 2024-2027.

“The vote on the Ukraine Facility in the European Council is a powerful signal of the partners’ continued support for Ukraine. The next step will be to determine the final terms of the programme as part of a trialogue between the European Council, the European Commission and the European Parliament. The final regulations are to be adopted by the European Parliament during its plenary session scheduled for 26-29 February.

We expect to receive the first instalment of EUR 4.5 billion in March. The Government is currently working on a corresponding agreement on transitional financing together with our European partners. We are grateful to our allies for their help and trust in Ukraine,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

The First Deputy Prime Minister added that the European Council’s decision also reflected a positive assessment of the preparation of the Ukraine Facility Plan, which is being coordinated by the Ministry of Economy. Following the approval of the regulations in the European Parliament, the relevant final terms of the programme will be taken into account in the Plan. Once the document is approved by the Government, the Plan will be submitted to the European Commission for consideration.

The Ukraine Facility Plan envisages the implementation of structural reforms in the public sector, a number of economic reforms aimed at developing the business climate and entrepreneurship, as well as steps to develop priority sectors that can ensure rapid economic growth.

The support under the EU’s Ukraine Facility programme will be provided on a quarterly basis for meeting the criteria set out in the Plan for the implementation of the reforms.

As a reminder, the EU’s Ukraine Facility programme provides EUR 50 billion to Ukraine over 2024-2027. Of this amount, EUR 39 billion will be allocated to the state budget to strengthen macro-financial stability.

The programme also provides for a special investment instrument to cover risks in priority sectors, which will amount to EUR 8 billion. Investors will be able to receive funding under this instrument through the EBRD, the EIB and other international institutions. It is expected that the implementation of projects under this instrument will attract an additional EUR 30 billion in investments.

In addition, the budget of the Ukraine Facility programme provides for a separate area of technical support, including funds to cover interest on loans under the Ukraine Facility, which will amount to EUR 3 billion.